Anxious Leeds fans may have to wait another month before the potential conclusion of Sebastien Sainsbury's £25m takeover of the troubled club.

Sainsbury's team of lawyers yesterday held "a constructive meeting" with Walker Morris, the firm of solicitors who represent the Leeds board.

Leeds chairman Gerald Krasner previously stated he would never negotiate with Sainsbury after the collapse of his initial offer on November 12, made in tandem with a group of American investors, Nova Financial Partners.

Krasner, though, was forced to climb down last week as Sainsbury has since attracted fresh European investment, with proof of funds - which previously proved the stumbling block - ultimately provided.

It is understood a deal in principle is close but there are still a number of issues to resolve. Despite the financial complexities, in particular relating to the recent sale-and-leaseback of Elland Road and the Thorp Arch training complex, a buyout could be concluded before Christmas - but Krasner is believed to be in no rush.

But Leeds' problems were yesterday highlighted by the fact they are unable to pay the latest £1.2m instalment of their Inland Revenue bill.